Owning Real Estate is Not a Spectator Sport

It is the most consistent reliable investment ever

Working strictly with people and their money (and my own) for my entire life I’ve helped far more people whose life was determined by their money instead of those who control their money. If you get nothing more than this here’s the nugget and you got it!

“Money always moves to where it treated best”

If you need much more money than you have and are struggling to get it – Your work, your career and the amount of time you spend with your family may be controlled by money more than you think; how about a new path? You can use this right now – hesitate & the opportunity will be lose.

For the past 3 years, I’ve noticed something I’ve never seen happening in real estate. It’s not the same boring complex process it used to be and as a result so many have gotten and are getting into the pool.

Why is this so different? – As income and employment continue to improve, the availability of massive amounts of smart liquid cash, the ever advancing use of interactive geospatial technology, The lack of widespread bank and credit options (only the best of the best get loans), individuals and businesses are starving for and chasing immediate and long term profit. For 30+ years it’s been one or the other, but never income plus appreciation & the streets are getting crowded with people doing this! However for those who think they are too late, not a chance but if you do think that way change that thinking before you begin – you’ll fail for sure if you don’t believe you’ll succeed.

HISTORY

How big is real estate as an investment category? Did you know it is larger than all investments in the stock market? Consider the facts below about the real estate business being a $54 T industry used by everyone personally and in businesses in the US.

America’s real estate creates or supports approximately 9 million jobs.

The construction industry includes 1.6 million self-employed and 6.7 million wage and salary jobs;

In 1900, 75 percent of urban Americans lived in rented apartments or flats. In contrast, U.S. home ownership in 2006 reached a record high of 68 percent. Housing accounts for about 15 percent of gross domestic product (GDP) in a typical year.

In 2006, U.S. shopping centers generated $2.25 trillion in sales, and $124 billion in state sales tax revenues.

The nation’s multifamily housing provides homes for over 23 million households.

There are approximately 200 publicly traded real estate investment trusts (REITs) in the U.S. today, with a total total equity market capitalization of $312 billion (as of Dec. 2007). Tens of thousands of individual investors own shares of REITs.

Spending by resident and international travelers in the U.S. averages $1.9 billion a day. One out of every seven Americans is directly or indirectly employed in the lodging and tourism industries.

Here’s why to build and control financial wealth to the point of financial freedom right now instead of after a life time of working:

The moreimportant changes

Individually owned real estate is priced now as it was in 2002

The private market (not the traditional real estate model) is brimming with easy to navigate and understand profitable opportunities for small to medium sized investors

Technology is doing far more than ever and expanding

Tax laws favor business ownership & not employment

Prices have been rising and will for several more years

Immediate income is available so you get a return right now that’s better than anywhere else you could put your money and as property value goes up, your options improve even more.

The impact of this is

lots of qualified help is available at low or no cost

Immediate investment return exceeding anything else available

You control entry, exit, asset value, profit, and market timing

Choose to build a small or large retirement portfolio using retirement savings if advantageous

Owning real estate is a business which could save tax dollars going to IRS.

The best window

Doing this will be the best for the next 18 months to take advantage of income, appreciating asset values, and less competition than there soon will be.

PITFALLS

Ok, here why not to play:

It will cost you an extra 2-5 hours a week to run your business

You have to plan it – Entry (how to get in) Management (of the asset) – Exit strategy

Toilets get clogged, roofs lead, tenants must be replaced, you have more paperwork

You’ll need to find a good team to play on – playing the game alone you will fail

You think you don’t have enough money

You have to choose areas and property to buy

You’ll always need to do work on property when 1 tenant moves out before another moves in

100 more reasons Just like any other investment or business

People begin their real estate businesses with no money, not experience, and no contacts or clue how to begin. They do it and succeed. Will that be you? I don’t know what your character is, you ethics, your desire, but I can tell you this – Whatever it takes to get to that place in life where you have all you need, no attention on getting more, plenty of money is flowing your way from doing only what you enjoy, is priceless and a game worth playing as you look back on what it did take to get there.

It has been my joy to look back at all those I’ve helped, mentored, coached, or counseled over my career. Wasn’t always pretty but we always got the job done.